The data in the above table indicate that when the price level is 100
A) inventories fall and the price level rises.
B) the economy is in a long-run macroeconomic equilibrium.
C) inventories rise and the price level falls.
D) the unemployment rate is at its equilibrium level.
A
Economics
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Employing the information in Figure 3-2 above, when real disposable income is 1000, savings from households would be ________ and the marginal propensity to save would be ________
A) 300; 0.1 B) 100; 0.2 C) 100; 0.1 D) 500; 0.2
Economics
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Economics